Financial Sector Midcap Stock To "Hold" As Recommended By BP Wealth, TP Rs 165/Share

Broking firm BP Wealth has assigned a "Hold" tag to Indian Energy Exchange Ltd. (IEX) in its Weekly Wealth Institutional Research published on March 04, 2023. The brokerage has estimated a target price of Rs 165/share for the stock. Considering the given target price to the stock, the stock is likely to fetch a return of up to 13%. IEX is a midcap Financial sector stock with a market capitalisation of Rs 13,183.48 crore. Below are key takeaways from the report:

IEX's Stock Overview, CMP, Returns, and 52-Week High/Low

The last traded share price of IEX on NSE is Rs 146.70/share. The stock has gained 2.59% in 1 week, and 5.12% in 1 month, respectively. However, it has fallen 30.51% in the past 1 year. It has given a robust return of 145.73% in 3 years and 204.3% in 5 years, respectively.

The stock recorded its 52 week high on 7 April 2022 at Rs 251.50/share and its 52 week low on 26 December 2022 at Rs 129.25/share, respectively. Its Current Market Price is trading 13.50 up from its 52 week low.

Valuation and Outlook

According to BP Wealth, "IEX is the leading power exchange in India enjoying a market share of 99.9% in its two product offerings i.e. DAM and RTM segments. Earlier, the company was restricted to deliver electricity contracts for a period ranging from 1 hour to 11 days. However, in a drive to expand the short-term market and increase its share within the segment, the business introduced longer-duration contracts in July 2022. Moving forward, it is also working to initiate other proactive concepts like gross bidding contracts and ancillary markets."

It added, "In the year 2030, India is expected to sell around 200 million carbon credits with demand driven from Indian corporations in the range of 120-130 million. Thus, the company envisions a huge potential in its new subsidiary - ICX to cater to this market in the future. On the valuation front, we value the company at a P/E of 48x based on its FY22 earnings to arrive at a target price of INR 165 which is an upside of 14% from the current levels."

Disclaimer

The stock has been picked from the brokerage report of BP Wealth. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.